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View Diary: The Problem with Crypto-Currencies and Why SolarCoin is Different (124 comments)

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  •  A Thousand Dollar Bill is... (0+ / 0-)

    a convenient representation of a currency that banks and governments issue.  You are used to bills as money, but if you had never seen paper currency and had always used cryptocurrency, you would have the same reaction to paper.

    Ted Cruz: The second coming of Christ, but not Reagan (yet).

    by nuketeacher on Sun Apr 13, 2014 at 06:44:46 PM PDT

    [ Parent ]

    •  except that one knows precisely who issued the (1+ / 0-)
      Recommended by:
      HoundDog

      1000k bill (with pic of Grover Cleveland) - the Federal Reserve...

      in the past (till 1970 or so) we also had US Notes issued by the Treasury

      but who issues Bitcoin?

      for me that remains the principal mental stumbling block when it comes to virtual currencies

      We're shocked by a naked nipple, but not by naked aggression.

      by Lepanto on Sun Apr 13, 2014 at 07:03:55 PM PDT

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      •  Bitcoins are issued automatically by software (4+ / 0-)
        Recommended by:
        nuketeacher, jbalazs, Lepanto, HoundDog

        on a precise money-creation schedule which is built into the code. In other words, the inflation rate is set by the software, and the software exists in the cloud and can only be changed by community consensus of 50%+1 of all Bitcoin users.

        As for SolarCoins, 99.4% of them will be issued to solar electricity generators over the next approximately 40 years. This raises some challenging issues, because, as you rightly point out, most people don't want to place their trust in some random NGO to issue a money supply.

        What the SolarCoin Foundation is planning to do is set up an automated system, using the public ledger technology upon which Bitcoin and all cryptocurrencies are based, through which solar energy generators can submit their claims for SolarCoins, have those claims be validated by software, and receive the grants from the Foundation without going through a human bureaucracy. The specifics of this system are currently under development.

        The most serious problem in American politics today is that people with wrong ideas are uncompromising, and people with good ideas are submissive and unwilling to fight. Change that, and we might have a real democracy again.

        by Eric Stetson on Sun Apr 13, 2014 at 07:10:19 PM PDT

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        •  thanks (2+ / 0-)
          Recommended by:
          Eric Stetson, HoundDog

          the whole thing requires that one start thinking in a different way about money...

          say, though, that "community consensus of 50%+1 of all Bitcoin users" decides to change the software (for whatever reason), who will in practice change the software?

          in other words, who is actually managing the whole system?

          We're shocked by a naked nipple, but not by naked aggression.

          by Lepanto on Sun Apr 13, 2014 at 07:19:47 PM PDT

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          •  The Bitcoin Foundation (2+ / 0-)
            Recommended by:
            Lepanto, HoundDog

            is the governing body of the Bitcoin currency. Ultimately they would be the ones to implement changes in the software. Periodically they do release updates.

            The SolarCoin Foundation is currently in the process of setting up its legal governing structure. I'm involved in those discussions as a volunteer, since I have a background in nonprofit development and recently met with one of the SLR founders and joined their team. It's a very interesting and complex project and I'm trying to give the best input I can, based on big-picture and long-term considerations.

            I should add that the SolarCoin Foundation is open to anyone's input. The project is very new; it only launched in January. We need all the help we can get, and I personally feel strongly that progressive activists should be involved in this project and can contribute a great deal with their ideas and passion. :)

            The most serious problem in American politics today is that people with wrong ideas are uncompromising, and people with good ideas are submissive and unwilling to fight. Change that, and we might have a real democracy again.

            by Eric Stetson on Sun Apr 13, 2014 at 07:30:44 PM PDT

            [ Parent ]

            •  do we know the identities of the members of the (1+ / 0-)
              Recommended by:
              Eric Stetson

              Bitcoin foundation?

              we all know who heads the Federal Reserve for example, but when it comes to the Bitcoin Foundation...

              I suspect that this lack of transparency in this regard (or quite possibly just my ignorance !) is one of the reasons for the unease with virtual currencies, one is (or at least I am)
              always plagued by the interrogative "just who is behind it all ?"

              We're shocked by a naked nipple, but not by naked aggression.

              by Lepanto on Sun Apr 13, 2014 at 07:38:33 PM PDT

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      •  I've issued a special limited issue 1000K bill (4+ / 0-)
        Recommended by:
        nuketeacher, linkage, Sandino, Satya1

        with a picture of The HoundDog on them, and I must say, I'm looking sharp, in these. In a special offer for tonight only I could let these babies go for $500 each. (snark alert. Damn, i can hear the SWAT team helicopters lalready closing in and I left my "Go back" at my other "safe house." I hate it when this happens.  

        "Seriously, Folks, WTH?" - ("What the Heck? "h/t Joan McCarter, Seriously, Florida. WTF?)

        by HoundDog on Sun Apr 13, 2014 at 07:36:32 PM PDT

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        •  LOL (3+ / 0-)
          Recommended by:
          Eric Stetson, linkage, HoundDog

          The main point of my diary is that there are all these charlatans out there issuing new cryptocurrencies somehow hoping that somehow, magically I guess, their currency is going to somehow become widely accepted.  You and your bills have the same problem: Who's going to use it? It ain't going to happen.

          In the case of SolarCoin, there is a real motivation for people to use it: encouraging the production of solar energy.  I think SolarCoin will make it, and I am putting real money into that idea.  I may lose it all.  My loss obviously.

          Ted Cruz: The second coming of Christ, but not Reagan (yet).

          by nuketeacher on Sun Apr 13, 2014 at 07:48:09 PM PDT

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          •  Sound really interesting nuketeacher. I learned (2+ / 0-)
            Recommended by:
            nuketeacher, Eric Stetson

            more from this post and these discussions from you, Eric, Lepanto and others than any in a very long time.

            But, now I'm reminded of that old cartoon, when the kid in the classroom raises his hand, and asks, "teacher may I be excused? My brain is full."

            "Seriously, Folks, WTH?" - ("What the Heck? "h/t Joan McCarter, Seriously, Florida. WTF?)

            by HoundDog on Sun Apr 13, 2014 at 08:56:08 PM PDT

            [ Parent ]

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